Help For Companies
Companies will welcome the range of guidance published by Companies House in recent weeks to help them manage the negative impact of the covid-19 crisis on their operations.
The key issues covered by the guidance are as follows:
Extension to filing of accounts: from 25 March 2020 businesses have been able to apply for a 3-month extension for filing their accounts and thus avoid attracting automatic financial penalties for late filing. Companies that cite covid-19 related reasons will be automatically granted an extension with immediate effect. The application system is simple – a 15-minute fast-tracked online process.
However, if a company has already extended its filing deadline or shortened its accounting reference period, it may not be eligible for a further extension under these rules. Companies House has also confirmed further extensions will be granted “if needed”.
Striking off: companies who are late in filing their annual accounts of confirmation statements will still be written to, but Companies House has confirmed it has temporarily paused the strike off process to prevent companies being dissolved. The purpose is to give them time to update their records and help them avoid being struck off the companies register during the pandemic crisis.
Also, Companies House says companies who receive a late filing penalty due to covid-19 will have appeals treated “sympathetically” – though how that might play out in practice remains to be seen. It will also provide a break for companies to pay late filing penalties, as well as providing additional support with payment plans in relation to late filing penalties.
What about applications for voluntary strike off? Companies House has confirmed that once an application is registered, a notice in the Gazette will be published as normal telling the public that the company is applying to be struck off the register. But it will then suspend further action to strike off and dissolve the company in order to protect creditors and any other interested parties who want to object to the company being struck off.
Emergency filing: Companies House has set up an emergency digital filing service in response to covid-19. Companies can use this system to, for instance, apply for rectification by the registrar of companies, object to a request to rectify the register, apply to remove material about a director and correct a director’s date of birth.
Annual General Meetings (AGMs): companies legally required to hold AGMs will have safety concerns around covid-19, so there are now measures in place to facilitate the holding of AGMs in way that is safe and consistent with the prevailing social distancing measures. Companies can now take advantage of temporary measures giving them flexibility to hold AGMs online via Zoom, FaceTime, etc or postponing the meetings while the restrictions remain in place.
Remember, these are all temporary measures and subject to review, so always check the latest guidance and announcements by visiting the Companies House website; and take specialist legal advice if you have any concerns.
If you would like us to cover an issue in the next NGM Tax Law Newsletter, we would be pleased to hear from you